Taipei: President Lai Ching-te announced on Monday that the proposed 2027 central government budget will incorporate NT$235.7 billion (US$7.401 billion) to fund a universal NT$10,000 cash handout. This decision comes in the wake of robust economic growth driven by the flourishing AI-related industries.
According to Focus Taiwan, Lai highlighted in a Presidential Office news release that the projected central government revenue for 2027 has been adjusted to NT$3.9266 trillion. This increase in revenue facilitates the inclusion of the cash handout while ensuring the budget remains balanced, with "effectively no new borrowing," as described by Lai.
"We have decided to add NT$235.7 billion in expenditures to provide NT$10,000 in cash to each person next year, so the 'AI dividend can be shared by all,'" Lai stated, explaining that individuals and families would have the freedom to choose how to utilize the money-be it for education, elder care, household expenses, or spending that supports local businesses. However, the Presidential Office did not disclose details regarding eligibility, distribution methods, or the timing of the cash payments.
Taiwan previously implemented a universal NT$10,000 cash handout in 2025 under a special budget aimed partly at alleviating the effects of U.S. tariffs and inflation. During that period, beneficiaries included Taiwanese citizens, foreign permanent residents, and foreign spouses of Taiwanese citizens with residence permits.
Lai's announcement followed the Directorate-General of Budget, Accounting and Statistics' revision of Taiwan's 2026 economic growth forecast to 11.05 percent from 9.64 percent. Taiwan's economy grew by 14.15 percent in the first half of the year, with full-year growth anticipated to reach its highest level in 39 years, largely due to escalating global demand for AI, high-performance computing, and cloud services. This surge has propelled orders, exports, and investment in Taiwan's semiconductor, ICT, and manufacturing sectors.
Despite the economic successes, Lai acknowledged that the benefits have not been uniformly experienced, particularly by those working outside the burgeoning technology sector in services, traditional industries, and small and medium-sized enterprises.
In addition to the cash handout, Lai stated that the 2027 budget would concentrate on five other priorities: family support, national defense, technology development, public infrastructure, and increased financial support for local governments. NT$373 billion will be designated for family support measures, while national defense spending will exceed NT$1 trillion for the first time, totaling NT$1.1225 trillion and remaining above 3 percent of GDP.
Lai urged the Cabinet to prepare the budget as scheduled and expressed his hope that the Legislature would review it "on schedule." His call came shortly after the opposition-controlled Legislature approved the 2026 central government budget following an unprecedented delay. The opposition Kuomintang and Taiwan People's Party, which collectively hold a legislative majority, reduced the Cabinet's proposed expenditures by NT$48 billion, approving NT$2.9869 trillion in spending.